In a report released today, Josh Jennings from TD Cowen maintained a Buy rating on Establishment Labs Holdings, with a price target of $77.00.
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Josh Jennings has given his Buy rating due to a combination of factors that highlight Establishment Labs Holdings’ strong financial performance and growth potential. The company reported a solid third quarter with revenue surpassing expectations, achieving $54 million compared to the anticipated $52 million. This growth was driven by impressive US Motiva sales, which saw a 16% sequential increase despite seasonal challenges, and contributed to a positive EBITDA, setting the stage for potential cash flow positivity in the coming year.
Additionally, Establishment Labs Holdings has revised its revenue expectations upward, now projecting 2025 revenue to exceed $210 million. The company’s gross margin has improved significantly, and its operational losses have narrowed considerably compared to previous periods. These financial improvements, alongside a strengthened cash position, underpin Jennings’s confidence in the company’s future performance, justifying the Buy rating.
According to TipRanks, Jennings is a 2-star analyst with an average return of 0.6% and a 46.39% success rate. Jennings covers the Healthcare sector, focusing on stocks such as Medtronic, TransMedics Group, and Boston Scientific.